Temporary disqualification does not mean deactivation of DIN: Kerala High Court.

Updated: Jun 29, 2021

Kerala High Court |  Social Thikana | Treesa Sunil

Around 250 writ petitions were filed before the Kerala High Court challenging the validity of Sections 164(2) and 167 (1) of the Companies Act, 2103. The petitioners were subject to disqualification on failure to file annual return statements. The court held that the aforementioned sections of the Companies Act are valid and the writs were dismissed.

However, the Director Identification Numbers (DINs) of the petitioners which were deactivated was not held to be necessary as the court pointed out that the disqualification was temporary.

Justice N.Nagaresh, the presiding judge directed the respondent to re-activate the Director Identification Numbers (DINs) of the petitioners immediately. However, it was made clear that the respondents will be at liberty to cancel or deactivate the DINs of the petitioners for any reasons laid down in Rule 11 of the Companies (Appointment and Qualifications of Directors) Rules, 2014.

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